Relating to the basic allotment and the guaranteed yield under the Foundation School Program, including an adjustment in those amounts to reflect inflation.

HB 2435 adjusts Texas school funding under the Foundation School Program by automatically increasing the basic allotment per student each year to match inflation. Starting in the 2026-2027 school year, the state will raise the $8,947 base funding amount annually based on the Consumer Price Index (CPI) for urban consumers, as tracked by the U.S. Bureau of Labor Statistics. If inflation is negative, the adjustment defaults to zero to prevent funding cuts. This change directly affects all Texas public school districts receiving state funding under this program, ensuring their per-student allotment keeps pace with rising costs. The bill takes effect September 1, 2025, with the first inflation-adjusted funding applying for the 2026-2027 school year.